Inflation reaches 4.2% in March, BNR expects 3.7% by year-end

The rate of inflation in Romania reached 4.2 percent in March this year, according to a recently issued inflation report by the Romanian Central Bank (BNR). This is lower than the level of inflation at the end of 2009. The slowdown in the increase of consumption prices was due to the lack of demand for tobacco products, after excises were increased. However, the increase in gas prices has put pressure on prices. The Central Bank, which expects an economic increase for this year and for next year, hopes for a 3.7 percent inflation at the end of this year, which is 0.2 percentage points more than what was previously estimated in February this year. The recent macroeconomical evolutions, both local and international, still cast shadows of uncertainty on when the country will be able to whether the storm. The main internal risks factors are connected to fiscal policies and revenues in the public sector, says BNR.